Message from @wacka
Discord ID: 624363867010760704
it won't inflate wages with it
and hasn't
it has tbf 😛
it hasn't
wages have massively outpaced inflation over the past few years... and thats with net immigration in the hundreds of thousands
plots have got smaller and more expensive - a property my parents generation afforded on 1 modest wage would take 2 wages well above median wage to afford now
it's not even remotely close
thats more to do with interest rates than population or anything like that...
nope
it's both
they would still have to pay thousands a month for the same size home today on a much smaller loan
demand >> supply
which is why its great that inflation kicked in.. rates went down.. and now its easier to pay off the relatively small loan
if the interest rates were much higher then prices would be lower, but they would be equivalently unaffordable to the way they are now
Also, interest rates are not going to go up now
or anytime in the short or medium term future
they will crawl up
but it depends a bit on the next Carney
Nah, the entire system has been debased, they won't go up
we might get a hawkish BoE leader who puts them up a point a year
they do that, they'll crush the housing market and make people homeless, so nah
not necessarily
They can't do anything except raise it extremely slowly without crippling people
for example....
And even small increments in interest rates will suck so much spending power out of the system it'll stall growth
when I got my 5yr fixed - the base rate was at 0.5% and my rate was 1.79% ... that same mortgage is now at 1.59% and the base rate is 0.75%
How much of that is because government bonds are going negative in large chunks of the western world?
I.E. it's not a sign of a healthy economy
banks are still competing for customers too.. so up-ing the base rate wont necessarily crush people
Putting it up 1% will
Putting it up 5% definitely will
I mean if they put it up another quarter point and at the end of my term the mortgages are still at 1.79% then it makes no difference to me
and theyre not going to put it back to 5% for a long while... it will be a crawl back... unless there is a massive boom
There'll be shit tons of people not on a fixed rate for whom a 1% hike would cost them a fortune
Either way, it doesn't resolve the need to prevent population levels rising in England
I remember having a fair amount of savings back in 2007 and I was getting something like £100 a month just in my current account
think it was in the region of 10k or something... which was a fair amount to save up for a younger lad
then again Ive been working since I was 14 😛
The days of interest-bearing bank accounts is long gone, and won't be coming back any time soon